Specifically, regulators are looking at whether the firm rewarded brokerages that pushed its funds unduly with brokerage commissions, failing to get the best execution price on trades for investors. The firm may have been placing its own interests ahead of that of investors, therefore neglecting its fiduciary responsibility.
A spokesman for Capital declined to comment for The Times, but did reemphasize an early assertion that the firm is fully cooperating with federal and state regulators, both of whom had requested information from the firm.
Since revelations of the scandal last September, regulators have probed deep into the industry and are scrutinizing a large number of practices, including a number of areas rife with potential conflict of interest abuses.
Revelations of potential wrongdoing should come as a surprise to many as a large number of investors sought shelter in the high-integrity American Funds, following news of wrongdoing at
Furthermore
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